Foreign aid, green cities and buildings

This paper attempts first to assess foreign aid effectiveness in fostering green cities procedures in developing countries. To this purpose, we rely on the following aid effectiveness criteria: national ownership, harmonization, alignment and mutual accountability and results management. Our analysis shows that some programs are effective and scalable. The second attempt of our paper is to try to link in a GMM model, CO2 emissions from residential buildings and commercial and public services to total foreign aid and sector specific aid like energy. Our results show that foreign aid is not significant, when it enters the regression as a level variable. However, it is significant as a quadratic term. Again, when it's crossed with electricity production from renewable sources, aid reduces CO2 emissions. Our policy recommendation is therefore to foster foreign aid for ecological projects which are known to have strong effect on the reduction of CO2 emissions in developing countries' cities. This will contribute to the greening of their cities.